Correlation Between Grupo Carso and Commercial Vehicle
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Commercial Vehicle at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grupo Carso and Commercial Vehicle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and Commercial Vehicle Group, you can compare the effects of market volatilities on Grupo Carso and Commercial Vehicle and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Grupo Carso with a short position of Commercial Vehicle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Commercial Vehicle.
Diversification Opportunities for Grupo Carso and Commercial Vehicle
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Commercial is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Commercial Vehicle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial Vehicle and Grupo Carso is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Grupo Carso SAB are associated (or correlated) with Commercial Vehicle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial Vehicle has no effect on the direction of Grupo Carso i.e., Grupo Carso and Commercial Vehicle go up and down completely randomly.
Pair Corralation between Grupo Carso and Commercial Vehicle
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 0.56 times more return on investment than Commercial Vehicle. However, Grupo Carso SAB is 1.77 times less risky than Commercial Vehicle. It trades about -0.06 of its potential returns per unit of risk. Commercial Vehicle Group is currently generating about -0.2 per unit of risk. If you would invest 550.00 in Grupo Carso SAB on August 25, 2024 and sell it today you would lose (20.00) from holding Grupo Carso SAB or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. Commercial Vehicle Group
Performance |
| Timeline |
| Grupo Carso SAB |
| Commercial Vehicle |
Grupo Carso and Commercial Vehicle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Commercial Vehicle
The main advantage of trading using opposite Grupo Carso and Commercial Vehicle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Commercial Vehicle can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Commercial Vehicle will offset losses from the drop in Commercial Vehicle's long position.| Grupo Carso vs. Superior Plus Corp | Grupo Carso vs. NMI Holdings | Grupo Carso vs. Origin Agritech | Grupo Carso vs. SIVERS SEMICONDUCTORS AB |
| Commercial Vehicle vs. Apple Inc | Commercial Vehicle vs. Apple Inc | Commercial Vehicle vs. Apple Inc | Commercial Vehicle vs. Apple Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |